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Development and Application of the Composit Competitiveness Index of Old Industrial Complexes

Yang Wontak 1

1서울대학교

Accredited

ABSTRACT

The purposes of this study are to develop an index capable of allowing one to evaluate the competitiveness of old industrial complexes comprehensively and to analyze characteristics and problems of non-competitive and old industrial complexes. First, this study assessed the competitiveness of old industrial complexes using the specific indicators of labor productivity, employment, and innovation. It was found that the evaluation results for each indicator are both different and complementary. Second, this study developed the Composite Competitiveness Index (CCI) by means of linear transformation. CCI reflects the characteristics of each indicator and most of the old industrial complexes were less competitive. Third, this study classified old industrial complexes into high-, middle- and low-competitiveness groups using a rank-size distribution and compared the characteristics of each group. As a result, the industrial complexes in the lowest competitive group were highly vulnerable with regard to labor productivity, employment and innovation. Moreover, the lowest group showed weaknesses in agglomeration economies as well as restructuring, and there was also the problem of the weakening of the competitiveness of the company level due to the increased number of small-size enterprises and a lack of supporting facilities. On the other hand, comprehensive competitiveness was not significantly related to operating period or developer. The results provide a framework with which to evaluate competitiveness in old industrial complexes efficiently and present implications with regard to establishing desirable policies for old industrial complexes.

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